Why is Malaysia part of this story?
According to the New York Times, Megaspeed bought around US$2 billion of Nvidia’s most advanced chips through its Malaysian subsidiary and used them in data centres in Malaysia and Indonesia. US and Singapore authorities are investigating whether US export controls or local laws were broken. These investigations concern Megaspeed, not Malaysian listed companies.
What is Malaysia’s AI chip permit?
On 14 July 2025, the Ministry of Investment, Trade and Industry (MITI) made a Strategic Trade Permit mandatory for the export, transhipment and transit of US-origin high-performance AI chips, under Section 12 of the Strategic Trade Act 2010.
- Companies must notify the authorities at least 30 days before such an export, transhipment or transit.
- The rule targets chips leaving Malaysia. It does not stop data centres importing and using the chips in Malaysia.
- MITI said the aim is to close regulatory gaps and stop US chips being diverted.
What could this mean for Malaysia’s data centre sector?
Malaysia has become one of Asia’s fastest-growing data centre markets, and the government says it wants data centres to have secure access to global chips. Stories like this one can lead to:
- Closer US scrutiny of where advanced chips in the region end up, and who uses them.
- More checks on customers by chip sellers and data centre operators.
- Headline risk for shares linked to the data centre theme on Bursa Malaysia, even when the companies themselves are not involved.
What should Malaysian investors watch?
- Any change to US export rules for AI chips in Southeast Asia.
- Statements from MITI on enforcement of the chip permit.
- The outcome of the US and Singapore investigations into Megaspeed.
- How data centre-linked companies on Bursa describe their customers and chip supply in their results.
None of this is a call to buy or sell any stock. For a regular read on the market, join the DCXCADEMY Telegram channel.
Frequently Asked Questions
Is any Malaysian company accused in the Nvidia story?
No Malaysian listed company has been accused in the reports. The investigations concern Megaspeed, a Singapore-based company with a Malaysian subsidiary.
Can Malaysian data centres still use Nvidia chips?
Yes. Malaysia’s permit applies to exporting, transhipping or transiting US-origin AI chips, not to importing and using them locally.
When did Malaysia start requiring the AI chip permit?
On 14 July 2025, announced by MITI under the Strategic Trade Act 2010.
Sources
This is a developing story, written from the reports above as of 9 November 2026 (Malaysia time). The espionage claims are allegations by US officials reported by the media; they have not been proven, no one has been charged, and China has called the reports baseless.
Disclaimer: This article is for education and information only. It is not a recommendation to buy, sell or hold any security. Dexter Chia is a licensed dealer’s representative (R336) at Malacca Securities (M+ Global).
